ICDX to set up bonded logistics center

By Thomas Sembiring

The Indonesia Commodity and Derivatives Exchange (ICDX) is preparing to set up a special bonded logistics center for commodity exchange as part of new infrastructure facilities being planned to help realize the exchange?s ambition to become bellwether of global tin prices.

ICDX CEO Megain Widjaja said that since the exchange launched its tin exchange three years, volatility in global tin prices has now dropped to around 15 percent from 25-30 percent, suggesting that the exchange has started to have influence in determining global tin price.

?I think this is one of the points that must be considered that Indonesia has become a barometer of global tin prices,? Megain said on Thursday.

He added that despite its relatively young age, the ICDX can compete with the much older London Metal Exchange because Indonesia has much better tin quality with tin purity level of 99.9 percent, compared to tin products from other producing countries.

Megain said that to help further bolster the role of the domestic tin exchange, the ICDX is preparing to develop a number of new infrastructure facilities particularly a special bonded logistics center for commodities.

Dorothea Sigit, a senior official at the Directorate General of Customs and Excise, said that the planned special bonded logistics center for commodity exchange is in line with the instruction of President Joko Widodo to develop bonded logistics centers in the country in a bid to lure back Indonesian commodities including tin stored overseas.

He said that a new regulation on the special logistics center for commodity exchange is expected to be issued in October, to allow the ICDX proceed with its plan.

ICDX is planning to develop a bonded logistics center in Marunda, North Jakarta, where it is setting up a 1,200 sqm warehouse, on a 15,141 sqm plot of land, equipped with international standard facilities.

Editing by Reiner Simanjuntak